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More On Free Comp Checks

How often do you actually get an appraisal order if they want a free comp check first and you won&#3

  • Never

    Votes: 207 30.8%
  • Maybe 1 out of 100 calls like that

    Votes: 107 15.9%
  • About 1 out of 50 calls like that

    Votes: 94 14.0%
  • About 1 out of 10 calls like that

    Votes: 117 17.4%
  • About 1 out of 5 calls like that

    Votes: 94 14.0%
  • I ALWAYS talk them into the order without giving a value first

    Votes: 53 7.9%

  • Total voters
    671
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Mark-

Looks good to me.
FWIW, on my Desktop, my intended use is not "to make a lending decision". I go into a little more detail (perhaps more than I need), but I want it to be clear what the intended use is and isn't:

Intended Use: The intended use of this assignment is to provide the client with an opinion of value for a residential property. This opinion will be used in conjunction with analyzing the subject property’s mortgage finance application. This analysis (conducted by the client) is intended to determine if the subject qualifies for a mortgage finance (refinance or purchase) transaction. The intended use of the results of this assignment is not to determine the Market Value of the subject for the Lending Decision. The intended use of the results of this assignment is to determine if a mortgage finance application should be pursued.
An affirmative conclusion by the client to proceed with a mortgage finance transaction based on the results of this assignment ends this assignment’s intended use. A separate and distinctly different appraisal is required to conclude an Opinion of Market Value that would be appropriate for consideration in the Lending Decision.
 
I wonder how many of those were used along with an AVM to close loans.

YOUR E&O and liability that they WILL rely on.
 
The intended use is clear, it is to get the order. I find some in here an absolute disgrace to this business.
 
The intended use is clear, it is to get the order. I find some in here an absolute disgrace to this business.

Richard-
If you are talking about the intended use of the value, I suppose you can read the stated intended use and conclude that despite what is written, it really isn't what is written.:shrug:

If you are talking about the intended use of the service ("to get an order"), then let me ask you a very simple question:
Why on earth would someone go through all the regulatory requirements in providing a desktop appraisal when the majority of those who do complete such tasks make no attempt to do it in a compliant or ethical manner?
My question is somewhat rhetorical, and I apologize, but here's the typical answer:
That's simple, Denis. You guys are just trying to cover your behinds. We all know that the mortgage broker is shopping for a value and your giving away a service. It is a disgrace!

Well, here's my experience:
A. Those who are shopping for value rarely want to fill out the pre-printed order form that has the SOW and engagement agreement on it.
B. Those who are shopping for value rarely want to pay COD for the order.
C. Those who are shopping for value rarely call back once they face A & B.
D Those who are not shopping for a value but are trying to make an informed business decision regarding the submission of a loan appreciate the service.
E. I have yet to have any significant issue when the result of an appraisal performed for the mortgage lending decision is less than what was opined in the desktop appraisal.

Of course, I am not trying to change your mind; its already made up, so more power to you. There are plenty who read this forum and who are constantly harangued with completing this service makes them a disgrace, Skippy, *****, Slut, and other less than gracious terms (and, I have been called all of the preceding on this forum).

I will not argue that many brokers shop for value. I can't stop that. They don't "shop" twice with me, which may actually reduce the phone calls I get.
I will not argue that many appraisers promise a value to get an assignment. I would call that action "disgraceful to the profession".
I will argue indefinitely, however, that there is nothing "wrong" or "disgraceful" with providing a desktop appraisal as part of the service offering in this profession.
You may choose not to do so. Good for you.
I choose to do so. Good for me.

Now, unless you get USPAP changed (and, as I've said before, I'm almost willing to support the change just to end these inane arguments) so that desktop appraisals are no longer a compliant service, like it or not, there is nothing "disgraceful", illegal, unethical, unfair, or unholy about them.

You don't like them; fine.
Your comment
I find some in here an absolute disgrace to this business.
reflects your opinion (which you are entitled to). On this specific issue, I'm happy to let all judge it for what it is worth.
 
If 70% of the appraisal business hadn't been lost to AVM's and lesser products over the last few years, I too would be incensed.

But I'm gettn' real tired of the lending community who's behind the legislation that ties the hands of the appraisers and puts us at odds with one another over USPAP compliancy, staged assignments and estimates vs. opinions. This is really getting ridiculous. You put five appraisers in one room to discuss one topic and it's rare you're going to get a consensus. The system needs fixed because it's badly broken.

My normal harsh and quick criticisms of appraisers like Dennis is beginning to lighten up, frankly. I think it's time for the appraisers to stop the infighting and band together to get some signficant changes made and level the playing field for the more conscientious appraisers. How many more years is this going to go on? Beating up on appraisers like Denis is NOT GOING TO FIX THE PROBLEM! Obviously, enforcement and education has not worked!

We have those who push the line in the gray areas who seem to be getting much further ahead financially, while those of us less adventurous continue to beat them up, half over the moral offense and the other half who are just outright ****** at the loss of revenue.:new_shocked:
 
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Thanks for the cookies TE.
Otis, it sounds like you may have fought this fight before. I will prepare for the barrage.
Welcome to the AF Mark. Fight? I don't fight. However, I did ask a question to which you did not answer. Please refer to my prior question and then tell us how you do that on the "subsequent" assignment that is completed as a summary appraisal report.

BTW, have you talked with Drena, Karen, Dean or some of the other "approved USPAP instructors" here in this market?
 
Those who have perfected the comp check game should be credited with perpetuating a situation where honest appraisers and lenders are damaged. By making comp checks an expectation, it rewards the worst appraisers and loan officers who have made flanking USPAP an art form. Part of an appraiser’s responsibility is to protect the overall public trust. Since the lowest members of the lending community rely on them, comp checks cause much harm to the public. Some may dance the Macarena around USPAP and say what they’re doing is legal and compliant, but since they’re not the ones being harmed, apparently they’re willing to accept it. If some in here with thin skins wish to have a pity party because not everyone extols their actions, I suggest they clean up their act or get used to some warranted criticism.
 
It Isn't The Revenue......

We have those who push the line in the gray areas who seem to be getting much further ahead financially, while those of us less adventurous continue to beat them up, half over the moral offense and the other half who are just outright ****** at the loss of revenue.:new_shocked:

I figure the majority of skippys are working for the folks I won't give the time of day to. Working for the aforementioned types is blood money, they want everything their way and yesterday. They fight you tooth and nail every step of the way. I'm not losing revenue to these jerks. I'm glad they are servicing these pikers. It is less nasty phone calls I have to deal with.The thing that irks me more than anything is that over the past few years with the huge influx of MBs and Skippys is that the whole dynamic of the Broker/Appraiser relationship has changed drastically. The tail now wags the dog. There is ZERO respect for either industry due to these recent wahoos who came in,made their own rules and have been getting away with it until the past month or so. They took the Mortgage/Appraisal industry to its knees, all with the help of ZERO legislation to stop it. Everytime one of these jerks gets on the phone and tries to steamroll me into discussing value etc.....I want to reach thru the phone and punch out his lights. I was never that way several years ago. Hopefully the death of subprime will eliminate much of this but I tend to doubt it. Like drugs, I just say no.
 
Some may dance the Macarena around USPAP and say what they’re doing is legal and compliant, but since they’re not the ones being harmed, apparently they’re willing to accept it.

Richard-

When you get a chance, do you mind posting a link to where I can purchase your version of USPAP?
(The version I have, put out by something called The Appraisal Foundation, must be wrong!:shrug: )
 
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I'm with Kevin on the aspect of quality business. He's exactly right, the pain does not end with the comp check. These are type of lenders where the deals that fall off at a rate of about 40-50% for whatever reason. Your assistant still gets paid for setting up the files, pulling taxes/plat maps, etc, making numerous phone calls to flakes......They're the ones who pester you for the cost approach on a 60 year old adobe with 4 build ons. The quality of the borrower is probably subprime, and guess what?? So is your underwriter's education. Have fun with nonsensical stips!

I don't do comp checks, and still end up with a relatively decent amount of potential business from these 'one and done' type lenders. Even without the comp check aspect, they are high maintenence, high overhead cost business. Charge them more than standard full fee if you must work with them.
 
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